5 People were Involved in 7 Shell Companies Used for Money Laundering and Retain Benefits from Criminal Conduct

Crime does not pay.

Regardless of whether it’s committed on an individual basis, or a ‘company basis‘.

5 People were Involved in 7 Shell Companies Used for Money Laundering and Retain Benefits from Criminal Conduct

According to TODAYonline, a total of US$1,676,737 (S$2.25m) was transferred to six Singapore-registered companies from 2016 to 2019.

Which wouldn’t have made headline news, had the nature of the transfers not been a deceiving one.

Apparently, the transfers prompted a total of eight police reports, with victims allegedly deceived into making the payments.

It eventually led to the sentencing of five individuals, including four company directors, for their involvement in money laundering and retaining benefits from criminal conduct.

7 Shell Companies

According to the news report, Tan Hock Keat, who was a director of corporate service provider DM Advisory, reportedly assisted an unidentified “George Clarke” to engage companies, in an attempt to establish corporate bank accounts.

Unfortunately, it was not a move with good intentions.

He then hired Phua Wee Hao, then a bank officer, to get more local nominee directors in on the act.

These directors included Wong Poh Kiong, Wong Zhang Jie and Low Ruey Ming.

Once the bank accounts were established, control was subsequently handed over to “George Clarke”.

Transfers were reportedly made to six shell companies: Plutusteam, Glidertex, Birseltex Global, Temco Industrial, Integrated Invest and Modelana Trading.

Another transfer, valued at HK$3,244,282 (S$559,000), was supposed to enter the hands of Jiangsu Chengde Steel Tube Share but did not materialise as the bank account was closed.

Sentencing

The five individuals were charged on 29 March and 8 April 2021 with crimes under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.

On 29 March, Tan Hock Keat, Phua Wee Hao and Wong Zhang Jie were charged with “entering into an arrangement to assist “George Clarke” to retain benefits from criminal conduct”.

Phua also faced an additional charge of abetting Wong Zhang Jie and Low, through a lack of honesty and the failure to exercise reasonable diligence as company directors.

For joining, or assisting the entering of an arrangement to pave the way for benefits of criminal conduct, they could face a fine of up to S$500,000, an imprisonment term of up to 10 years, or both.

For the failure to execute reasonable diligence while performing duties as a director of a company, they could face a fine of up to S$5,000, an imprisonment term of up to 12 months, or both.

Shell

Though unrelated, this incident may bring to mind that infamous incident involving two former Shell employees.

From 2014 to 2017, two former Shell employees gave out bribes to 10 employees from various surveying companies.

They were the rewards for reporting inaccurate amounts of gas oil that were loaded onto the vessels, which were slated to be inspected.

The bribes amounted to a staggering US$91,900 (~S$121,600) over the three years, from 2014 to 2017.

Two of the men faced 13 charges under the Prevention of Corruption Act, of which seven have been amalgamated. The last, on the other hand, faced four.

If convicted of a corruption offence, an offender can be jailed for up to five years and fined up to $100,000 for each charge.

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